Tories know the scale of their challengepublished at 14:40 BST 8 October

14:40 BST 8 October

Harry Farley
Political correspondent, at the conference

Image source, PA Media

Conservative shadow ministers and MPs I've been speaking to seem relatively happy with how this conference has gone.

Yes, Robert Jenrick has been ubiquitous giving speeches at events, dominating headlines with his comments about Handsworth, and being the main attraction at many of the evening drinks parties.

But open challenges to Kemi Badenoch's leadership are on hold – for now.

There's no illusion here about the scale of the challenge facing the party. Next May's local and national elections remain a danger point for Badenoch if the party's current polling translates into disastrous results.

But they leave feeling they have an argument to make; matching Reform UK's immigration policies while trying to shift the discussion on to the economy.

The biggest question is whether the Conservatives can rebuild trust that they will deliver what they say.

That is a much harder – and much longer – project. Even Badenoch's allies question whether that's possible to fend off the existential threat from Reform UK.

There's more than meets the eye with the Tory stamp duty policypublished at 14:32 BST 8 October

14:32 BST 8 October

Faisal Islam
Economics editor

What Kemi Badenoch announced with a flourish as abolition of stamp duty, is not quite that.

The £9 billion-a-year cost of the policy by 2029/2030 will still leave intact more than half of residential stamp duty, paid on second homes, and by companies and foreign buyers.

The Office for Budget Responsibility projects that the total take in that year will be £19bn a year. This is a rapid rise over the course of the next decade as many home sales were expected to come in to scope.

Effectively the Conservatives are banking on residential stamp duty paid elsewhere still raising as much as is paid in total today. Commercial stamp duty would add another £5bn a year.

But it is a substantial tax cut and reform that most economists expect could improve the efficiency of the economy by promoting worker mobility and faster exchange of housing. Essentially people would move more frequently to live in housing appropriate to their needs.

Image source, EPA

There are reasonable questions, given the recent record, about whether the promised savings to welfare will actually ever materialise.

Perhaps the most immediate economic impact of this, however, will be to start to smoke out if the government is serious about wider property tax reforms it is believed to already be preparing.

The official Labour response has intriguingly - not dismissed the idea of major reform to stamp duty. Some radical ideas have suggested replacing stamp duty with taxes paid by the sellers of property.

Rishi Sunak's former adviser has also floated the idea of replacing council tax with a new national annual property tax. The PM's new economic adviser Minouche Shafik is believed to have sought options.

The chancellor's team stresses she is aiming to use the Budget for growth-enhancing reforms as well as balancing the books.

The Conservative move definitely puts the spotlight on property taxes for next month’s Budget. It would not be the first time a leader of the opposition has scooped Budget measures that were already in the pipeline.

Image source, Reuters

Kemi Badenoch has delivered her leader's speech to the Conservative Party conference in Manchester.

Here's what we heard:

Stamp duty

The big announcement was a pledge to abolish stamp duty for primary residences in England and Northern Ireland.

The policy has as good a chance as any to cut through the noise, our chief political correspondent Henry Zeffman writes, while our deputy economics editor Dharshini David has been looking at the costings. We've broken down the details of the current stamp duty system here.

Economy first

Leaving the European Convention on Human Rights, scrapping the Climate Change Act, cutting welfare, banning doctors strikes, and "secure borders" were among the policies Badenoch set out - we've recapped them here.

But the "centrepiece" of her plans was a pitch to build a stronger economy, which Badenoch said underpins her other aspirations. She announced a "golden rule", saying her party would cut government spending and half of all savings would go towards reducing the deficit.

The reaction

She accused the other parties of “shaking the same magic money tree” in her speech. Labour responded, accusing the Tories of "peddling the same fantasy economics" as under former leader Liz Truss. The Lib Dems urged "one nation" Conservatives to join their party, and the Green Party said Badenoch was "out of touch".

Read more

We'll be ending our live coverage shortly, but you can read more about Badenoch's speech in our main article.

Image source, PA Media

Green Party leader Zack Polanski says Badenoch's address to the Conservative conference was "painfully out of touch" with working people in the UK.

"You can’t preach about a 'strong economy' while protecting the wealth of billionaires and underfunding the nurses, teachers and carers who keep this country going," he says.

Polanski claims the Conservatives are blaming immigrants for ordinary people not being able to pay their bills.

"If the government taxed the super-rich and the extreme wealth properly, we could rebuild our NHS, invest in green jobs and give everyone the security they deserve," he says.

Scrapping stamp duty comes at a cost - and could arguably benefit the wealthiestpublished at 13:55 BST 8 October

13:55 BST 8 October

Peter Ruddick
Business reporter

There was a big, red redacted line in the copy of Kemi Badenoch’s speech sent to journalists. We thought a possible tax rabbit could emerge from the Leader of the Opposition’s hat. And, so it did.

Stamp Duty is not a popular tax for anyone buying a property, but it is also not particularly well liked by a host of economists.

Why? Well, because it is known as a tax on moving house. And people moving houses help the economy to grow.

Some argue it also reduces the housing supply to younger people, or people looking to start a family, because homeowners stay put in properties that might be too big for them.

But, the plan to abolish it would have problems.

It would obviously come at a cost to abolish it entirely. Not everyone is convinced by the savings the Tories have promised.

And, abolishing it would arguably benefit the wealthiest. That’s because a third of Stamp Duty revenues come from more expensive properties.

Kate Whannel
Reporting from Manchester

I've just been speaking to Conservative Party members here at the conference in Manchester.

Augustus Roberts says he thought the speech was bold - particularly the surprise stamp duty announcement.

He says he was hesitant about Badenoch at first but after three days at conference feels he now understands her vision.

To win over more young voters he says he thinks the Conservatives need to explain their ideology better. "We're not doing things out of hate but out of a sense of responsibility," he says.

Okymayowa Oluwaseyi says the speech felt like "a breath of fresh air". She says she has seen a lot on social media from "you know who" (meaning Nigel Farage), but says the Conservatives are "the party of adults".

Alan Kennedy says he was a bit worried when he arrived in the main hall for the speech: "It was so easy to get in. Normally you have to queue for three or four hours. I thought good grief. The last thing we need is an empty hall."

But he says he was “thrilled" that by the time she started it had filled up. On the speech, he adds: "If that doesn’t see off the naysayers and plotters I don't know what will."

Janet Morley says Badenoch utilised the last 12 months: "She's sat back, been patient, listened, spent the time researching and now she has delivered."

Badenoch barely mentions Reform UK leaderpublished at 13:28 BST 8 October

13:28 BST 8 October

Henry Zeffman
Chief political correspondent, at the conference

Image source, EPA

This is the third party conference leader's speech in a row to take place in the context of Reform UK's massive surge in the polls, but the first to barely mention Nigel Farage.

In fact, Kemi Badenoch has only referenced him once, briefly, as part of a list of other party leaders who she accused of "shaking the same magic money tree".

It is a drastically different approach to Labour's Sir Keir Starmer and Sir Ed Davey from the Liberal Democrats, both of whom dedicated vast sections of their speech to attacking Reform. Badenoch explicitly rejected this, saying today: "We can't beat them simply by attacking them."

Instead she is trying to flesh out what the Conservative offer is. The risk, though, is that she took too long to do this in the early months of her leadership as Reform were surging.

What would abolishing stamp duty cost?published at 13:12 BST 8 October

13:12 BST 8 October

Dharshini David
Deputy economics editor

Abolishing stamp duty has obvious appeal – to those struggling to get on the housing ladder and to those saying property taxes need an overhaul.

But do the Conservatives' plans to abolish that duty add up?

Stamp duty (which applies in England and Northern Ireland) and its equivalent in Wales and Scotland currently bring in around £15bn per year. The Office For Budget Responsibility (OBR) forecasts that that revenue is set to rise to over £26bn in total per year by 2030.

But the Conservative plan would only relate to primary residential properties bought by individuals who are UK residents – and so they estimate that will cost the Treasury £9bn.

Yet that is only an assumption. Add in the other pledges – including the cut to business rates, the tax rebate for young people and the reversal of VAT on school fees – and the Conservatives reckon a cost of £21bn, which is close to half of the £47bn savings they say they've identified.

But the numbers behind all these plans – both the savings and the giveaways – have yet to be fully vetted. The independent OBR may think differently.

We've got some further details now on the new Conservative policy to abolish stamp duty.

In a press release, the party specifies that this will related only to primary residences irrespective of the price.

It will not apply to any additional homes, properties purchased by companies, or by non-UK residents.

The statement further underlines that separate taxation exists in Scotland and Wales - and therefore this policy will not apply there either.

• In Scotland, Land and Buildings Transaction Tax, external is the equivalent of stamp duty - and applies to properties or land above a certain value
• In Wales, a Land Transaction Tax, external applies for properties over a certain price threshold

Leader of the Liberal Democrats Ed Davey has not yet responded specifically to any points made in Badenoch's speech.

However, he has posted on X this morning as the party sends a van around Manchester broadcasting party promotional material.

"Kemi Badenoch ignored the former Conservative voters who believe in the rule of law, protecting our home for future generations and human rights for all our people," he writes.

"With the help of a snazzy van we made sure people could hear a different message in Manchester today."

The Labour Party has been quick to respond to Badenoch's speech, writing on X:

"The Conservatives haven't learnt anything from the economy-crashing days of Liz Truss. They should be apologising, not peddling the same fantasy economics. The Tories simply can't be trusted."

Image source, Reuters

Kemi Badenoch has concluded her speech at the Tory party conference - her first keynote speech as leader - where she insisted that the Conservatives are the only party that can "meet the test of our generation".

What stood out was a policy reveal: the next Tory government would abolish stamp duty, a tax levied on home buyers.

Here's what else she covered:

• The Tories would scrap Labour tax rises on schools, farms, and family businesses, reversing Labour's "vindictive tax" policies
• She plainly puts her intention to "secure our borders, take the UK out of the ECHR... and deport 150,000 illegal immigrants"
• Along with scrapping the Human Rights Act, the Tories hope to rid the UK of the Climate Change Act with the aim of slashing electricity bills
• Welfare, says Badenoch, will only go to those who "really need it" - something that will teach young people in particular, that "work is a good in itself"
• Badenoch vows cut back the civil service in size to where it was nearly a decade ago - claiming it has grown in size by over a third since Brexit - although the police force would not be cut
• Doctors strikes would be banned and police officers will be stationed back on to Britain's streets
• On education, "rip-off" courses would be scrapped to help double the apprenticeship budget

Of course these are all hypothetical changes, given Labour - who Badenoch took no time in throwing some jabs at - are currently the ones in government.

Stamp duty is a tax paid when buying a house or flat in England and Northern Ireland.

The amount of stamp duty you owe depends on the cost of the property, whether it will be used for residential purposes, and whether you own any other property.

For example:

• Homes up to £125,000 - Zero
• The next £125,000 (the portion from £125,001 to £250,000) - 2%
• The next £675,000 (the portion from £250,001 to £925,000) - 5%
• The next £575,000 (the portion from £925,001 to £1.5 million) - 10%
• The remaining amount (the portion above £1.5 million) - 12%

In short, the more expensive your new home, the more stamp duty you are liable to pay.

There are some exceptions. For example, if you are buying your first home, you don't have to pay stamp duty on properties worth less than £300,000.

Vowing to abolish stamp duty as good a chance as any to cut through the noisepublished at 12:18 BST 8 October

12:18 BST 8 October

Henry Zeffman
Chief political correspondent, at the conference

The question that’s hung over the Conservative Party conference all week has been whether Kemi Badenoch can find a way to cut through the increasingly multi-party political noise.

Vowing to abolish stamp duty stands as good a chance as anything. It is simple and easy to understand and – like quite a few of the Conservatives’ new policies this week – is targeted at the young people (or really non-pensioners) who polls show have abandoned her party in droves.

Clearly the next general election is a long time away and it’s therefore hard to know what the economic landscape will look like at that point. But as a statement of priorities this new policy will go down well among a Conservative Party which entered this week pretty sceptical of Badenoch’s leadership.

Wrapping up her speech, Badenoch says she wants to see a "better Britain" where people have a "brighter future".

She says she wants to stick to Conservative principles "which have led us to success in the past" - including family and freedom of speech.

"I stand for a Government that takes less of your money and doesn’t interfere in your life," she continues.

She lists other things she wants to see - including a country where "actions have consequences" and concludes by repeating the notions she started with - stronger borders and a stronger economy.

Her speech has now finished but stay with us as we bring you more reaction and analysis.

A rabbit out of the hatpublished at 12:10 BST 8 October

12:10 BST 8 October

Harry Farley
Political correspondent, at the conference

Image source, PA Media

This conference has been a blizzard of policy announcements as the Conservative’s attempt to define themselves against both Labour and Reform UK.

We had expected Kemi Badenoch to keep one more new policy back to announce in her speech that wasn’t trailed in advance.

And here it is.

Abolishing stamp duty. It’s very popular in the room with the biggest standing ovation of her speech so far.

After a string of announcements so far, Badenoch says it's time for one more.

If elected, Badenoch promises to scrap stamp duty, a tax owed by people who buy property over a certain price.

"At the heart of a Conservative Britain is a country where people who wish to own their first home, can," she says. "But our housing market is not working as it should."

"The next Conservative government will abolish stamp duty," she adds, to long, thunderous applause.

Turning now to energy - Badenoch says it is synonymous with "growth".

"Countries with cheap energy grow faster, countries with expensive energy decline."

She lists industries that she says are declining or disappearing - including manufacturing, farming and fishing.

She then says the party would get rid of the Climate Change Act which is a new policy the party has announced in recent days.

The Conservatives will "replace it with a proper strategy", she explains, as she underlines she is not a climate change sceptic, but that she is a Net Zero sceptic.

"We will axe the Carbon Tax on electricity, we will scrap Labour’s wind and solar levy and instead we will give you our cheap power plan."

Through this Tory plan, says Badenoch, electricity bills will be slashed by £165 for the average family.

She claims “nearly £5,000 for the average restaurant…and over £1,100 for the average pub” are costs that land on consumers.

“Conference I won’t promise you free beer...but I do want you all to have cheaper beer,” she tells the audience.

Still speaking about her blueprint for the country, Badenoch moves to its “centrepiece” - the economy.

“We are the only party with a plan to get our economy back on track,” she says, and that plan starts with “fiscal responsibility”.

She says the UK has to get the deficit down, and show how every tax cut or spending increase is paid for.

She outlines her new “golden economic rule”, saying every pound saved will be put to work.

At least half will go towards cutting the deficit because "living within our means is our first priority", she says, and with the rest going towards getting “Britain growing” and bringing down taxes.

Badenoch claims Labour will double the deficit with a borrowing and tax “doom loop”, and accuses Chancellor Rachel Reeves of “stealing from our children and grandchildren”.

But Badenoch says her party has “already identified £47bn in savings” from areas including the overseas aid budget, the civil service, and welfare.

Under the “golden rule”, half of those savings will go towards reducing the deficit, with the rest “going to unleash our economy”, Badenoch says.

Badenoch says police are spending 800,000 hours every year waiting with mental health patients.

“No more,” she puts plainly.

She vows that the Tories will put officers back on the streets – free from “pointless paperwork” - to go after people who will face a “triple stop and search”.

On NHS waiting lists, Badenoch says: “Enough is enough. We will ban doctors from going on strike.”

She accuses Labour of bending over to the teaching unions, promising the Tories would “will reverse this act of educational vandalism”.

"Education should be how people change their lives... it should ensure you get the job you want,” she says.

Onto university, she says graduates leave with "crippling loans and no real prospects.”

She pledges that the Tories will shut down rip-off courses and use the money to double the apprenticeship budget.

It’s “wasted money, wasted talent,” she says, criticising the “low-quality courses” that do not lead to “real jobs”.

This is personal for Badenoch, she notes, having completed two degrees and an apprenticeship.

"I was working with adults. I was paying my own way,” she recalls.

“It gave an eighteen-year-old me a self confidence that my university degrees never did. And unlike my degrees, I wasn’t left with any debt.”